Short And Sweet

It was a holiday-shortened week for the markets and as I’ve been cooking, eating, and drinking my ass off for the past four days, it will be a holiday-shortened Lund Loop this week.

Let’s get to the charts…

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MARKET REVIEW

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*Click any chart to enlarge. Please read disclosures at the bottom of this page.

S&P 500 Index (SPX)

NASDAQ-100 Index (NDX)

Dow Jones Industrial Average (DJIA)

Another solid week for SPX, NDX, and DJIA as we continue to move higher.

Even though we technically pulled back last week, I still think a deeper pullback - at least to the 21-day moving average - is due at some point.

Apple (AAPL)

AAPL is doing some nice consolidation at all-time highs.

Facebook (FB)

FB hit the trade target this week - up almost 7% from that reversal hammer three weeks back. It could use a week or so of consolidation before attempting to break out above the larger downtrend line.

Alphabet (GOOGL)

GOOGL held the support level from last week’s pullback.

Netflix (NFLX)

NFLX continues to grind higher, adding 1.35% this week. Looks like it could make it to the 200-day moving average before pausing.

Amazon (AMZN)

AMZN had a good week, adding 3.16%, but it’s still in a big sideways consolidation range.

Russell 2000 ETF (IWM)

Alert the press! IWM finally broke out of an almost 11-month range this week, adding a solid 2.24%. This type of price action is bullish for the overall market.

S&P 500 Volatility Index (VIX)

VIX tested that big support level but bounced on Friday. Hopefully, that’s just temporary.

iShares MSCI Emerging Markets ETF (EEM)

iShares Trust China Large-Cap ETF (FXI)

Both FXI and EEM had a good week - until Friday when they each took a hit due to new China-U.S. trade fears. EEM still looks slightly stronger than FXI though.

Financial Sector SPDR (XLF)

XLF is starting to move out of that consolidation area and heading towards all-time highs.

SPDR S&P Homebuilders ETF (XHB)

XHB looked like it was in danger of rolling over last week, but this week it got a nice 1.5% pop.

VanEck Vectors Semiconductor ETF (SMH)

SMH is basing near all-time highs. This is good price action that will provide a solid platform from which to move higher.

iShares Trust Biotech (IBB)

IBB has been on a tear since we first noted the trend break back in late October. It’s put on 13.3% since then and is due for a rest soon.

US Dollar Currency Index (DXY)

CBOE Interest Rate 10-Year T-Note (TNX)

DXY continues in an ever-narrowing range while TNX is holding on to a test of the broken trendline.

SPDR Gold Trust (GLD)

iShares Silver Trust (SLV)

GLD and SLV continue in their respective downtrends.

West Texas Oil (WTIC)

Consolidation is the name of the game here with oil

ETFMG Alternative Harvest ETF (MJ)

The best thing I can say about MJ this week is that it did not test its recent low.

Bitcoin (BTC)

BTC is just drifting lower in a large channel.

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TRADING & INVESTING

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*Click any chart to enlarge. Please read disclosures at the bottom of this page.

Hilton Worldwide (HLT)

The only chart of note from last week was HLT which tacked on a whopping 3.78%.

There are no new setups this week as most charts are looking overextended. This market could use a 1-3 week rest - and when that happens, we’ll start to see more constructive patterns that we can take advantage of.

However, we have a trading update from our friend Evan Medeiros of Trade Risk.

From Evan;

After initiating a long position in SHOP on 11/6 at 295.62 we locked in half of the trade this week at 333.94 for a +12.94% gain from our entry price. We continue to like SHOP as a position here and continue to hold half of our shares long with a next target up in the 370s. (disclosure: long) 

Don’t forget to check out Evan’s new 100% quant system, Merlin.


I hope you and yours had a great Thanksgiving holiday. I know I’m thankful to have you as a subscriber.

I’ll see you back here next week with another full version of the Lund Loop newsletter.

-B

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Thanks for reading this week’s edition of The Lund Loop.

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Talk to you soon,

-B

P.S. It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.

Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.